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MarginLab

MarginLab Business Articles

Better decisions start with better economics.

Practical analysis of the pricing, profitability, growth and operating decisions behind stronger ecommerce businesses.

50 Published analyses
7 Decision areas
1 Economic objective
Explore by decision area

Profitability is not one problem.

Stronger economics emerge from better decisions across pricing, products, acquisition, operations, cash and growth.

01 Profitability Revenue, contribution and profit quality.
02 Pricing Price changes, discounts and cost pressure.
03 Products SKU economics and product decisions.
04 Marketing CAC, ROAS and acquisition economics.
05 Operations Shipping, refunds and order economics.
06 Cash & Inventory Liquidity, stock and working capital.
07 Growth & Channels Scale, channel mix and economic quality.

The Business Articles Library

Fifty focused analyses built around real commercial questions rather than generic ecommerce advice.

Article 01 Profitability

How a $100K Store Can Make Less Profit Than a $70K Store

Why larger revenue can coexist with dramatically weaker operating economics.

Revenue vs profit Read article →
Article 02 Pricing

If You Raise Prices 10%, How Much Can Sales Fall Before You Lose Money?

Calculate how much volume can disappear before a price increase weakens total contribution.

Price elasticity economics Read article →
Article 03 Profit Leaks

7 Places Ecommerce Profit Disappears After the Sale

Follow one order through the costs that accumulate after checkout and reduce retained contribution.

Order economics Read article →
Article 04 Shipping

Free Shipping vs Paid Shipping: Where Is the Break-Even Point?

Find the conversion or basket improvement required to pay for merchant-funded shipping.

Shipping economics Read article →
Article 05 Products

Your Bestseller Sells 3× More. But Is It Actually Making More Money?

Why the product leading units and revenue can still lose the profitability ranking.

Product profitability Read article →
Article 06 Discounts

A 20% Discount Does Not Reduce Your Profit by 20%

See how a seemingly ordinary promotion can remove a disproportionate share of contribution.

Margin compression Read article →
Article 07 Growth

Sales Grew 30%. Why Did Profit Barely Move?

Use incremental economics to understand why rapid topline growth can create little additional profit.

Profitable growth Read article →
Article 08 Cash Flow

Profitable but Running Out of Cash: How Can That Happen?

Why inventory, payout timing, debt and growth can create liquidity pressure inside a profitable business.

Working capital Read article →
Article 09 Refunds

What Does a 10% Refund Rate Really Cost an Ecommerce Store?

Revenue returned is only one part of the economic damage created by refunds.

Post-purchase margin Read article →
Article 10 Contribution Margin

Contribution Margin: The Number That Changes Which Products You Should Push

Compare products by what remains after variable costs instead of gross profit alone.

Product economics Read article →
Article 11 Acquisition

How Much Should You Spend to Acquire a Customer?

Build a sustainable CAC target from contribution economics rather than advertising convention.

Customer acquisition Read article →
Article 12 Marketing

ROAS Looks Good. So Why Is the Campaign Losing Money?

Why an advertising metric can look healthy while the orders underneath it create weak economics.

ROAS vs profit Read article →
Article 13 Product Decisions

Should You Kill a Low-Margin Product or Try to Fix It?

A decision framework for keeping, repricing, repairing or exiting weak product economics.

Product triage Read article →
Article 14 Cost Inflation

Your Supplier Raises Costs 8%. How Much Should Your Price Change?

Translate supplier inflation into the price change actually required to protect contribution.

Cost-aware pricing Read article →
Article 15 Order Economics

Is a Bigger Average Order Value Always Better for Profit?

Why a larger basket can create more revenue while generating less contribution per order.

AOV economics Read article →
Article 16 Customer Economics

The Product Makes Money. The Customer Does Not.

Product contribution and customer contribution can produce completely different acquisition decisions.

CAC & retention Read article →
Article 17 Strategic Pricing

When Does It Make Sense to Sell a Product at a Loss?

A deliberate loss can be rational only when it purchases measurable downstream economic value.

Loss-leader economics Read article →
Article 18 Inventory & Cash

How Much Inventory Can You Afford to Hold?

Balance inventory cover, liquidity, replenishment time and markdown risk before committing cash to stock.

Inventory capital Read article →
Article 19 Channels

Amazon, Shopify or Marketplace: Which Sale Is Actually More Profitable?

The same SKU can generate a different margin in every channel through which it is sold.

Multichannel profitability Read article →
Article 20 Growth Strategy

When Should You Stop Chasing Revenue and Start Protecting Margin?

Identify when the next layer of revenue no longer earns enough economic value to justify the resources required.

Incremental growth economics Read article →
Article 21 Profitability

A Product Has a 60% Gross Margin. Can It Still Be Unprofitable?

Follow the margin waterfall from gross margin to real contribution after acquisition, shipping, fees and refunds.

Gross margin vs contribution Read article →
Article 22 Cash Flow

How Fast Can You Grow Before Cash Becomes the Bottleneck?

See how profitable growth can create a working-capital shortage when inventory and acquisition spend move before cash returns.

Growth and working capital Read article →
Article 23 Growth Economics

Raise Conversion Rate or Increase AOV: Which Growth Lever Makes More Profit?

Compare two familiar growth levers and see why the one that creates more revenue may not create more contribution.

Conversion vs AOV Read article →
Article 24 Inventory & Cash

You Have $50,000 in Inventory. How Much of It Is Actually Working?

Separate productive stock from slow and dead inventory to see how much working capital is really creating economic value.

Inventory productivity Read article →
Article 25 Shipping

Free Shipping at $50 or $75: Which Threshold Makes More Money?

Compare conversion, basket size and shipping subsidy to find the threshold that creates stronger contribution.

Free shipping threshold Read article →
Article 26 Marketing Economics

Your CAC Increased from $28 to $36. Should You Stop the Campaign?

Diagnose a rising acquisition cost using contribution, break-even CAC and payback instead of reacting to CAC alone.

CAC decision economics Read article →
Article 27 Fulfillment Economics

Shipping Costs Increased by $2 per Order. Should You Raise Prices or Absorb It?

Stress-test the profit impact of higher shipping costs and compare absorbing, passing on or sharing the increase.

Shipping cost response Read article →
Article 28 Customer Economics

A Customer Places 4 Orders a Year. How Much Can You Really Afford to Spend to Acquire Them?

Follow contribution through repeat purchases to see how payback time changes the CAC a business can realistically support.

CAC and payback Read article →
Article 29 Scaling Economics

Your Best Product Has a 70% Margin. Why Can It Still Be the Wrong Product to Scale?

See how marginal CAC, discounts, refunds and operating pressure can make the next layer of product growth less attractive.

Marginal product economics Read article →
Article 30 Inventory & Working Capital

Your Supplier Offers 10% Off if You Buy Twice the Inventory. Is It Actually a Good Deal?

Compare the supplier saving with the extra cash, sell-through risk and inventory exposure required to earn it.

Supplier deal economics Read article →
The MarginLab editorial principle

Revenue describes activity. Economics determine whether that activity deserves to grow.

New business analyses

Articles 31–50

Article 31Amazon & Marketplaces

Amazon Revenue Is Growing but Profit Is Falling. Where Is the Money Going?

Marketplace economicsRead article →
Article 32Amazon & Marketplaces

How Much Do Amazon Fees Really Reduce Your Product Margin?

Fee economicsRead article →
Article 33Amazon & Marketplaces

Should You Lower Your Amazon Price to Win More Sales?

Price-volume tradeoffRead article →
Article 34Amazon & Marketplaces

Amazon FBA vs Self-Fulfillment: Which Is Actually More Profitable?

Fulfillment economicsRead article →
Article 35Profitability

Your Store Is Growing 30% but Profit Is Flat. What Should You Check First?

Profit diagnosisRead article →
Article 36Forecasting

How Much Revenue Do You Need to Add $10,000 in Real Profit?

Profit planningRead article →
Article 37Product Economics

When Does a Low-Margin Bestseller Become a Business Risk?

Concentration riskRead article →
Article 38Cash Flow

How Much Cash Should an Ecommerce Business Keep Available?

Cash resilienceRead article →
Article 39Cash Flow

Can a Profitable Ecommerce Store Still Be Unable to Pay Its Bills?

Liquidity riskRead article →
Article 40Inventory & Cash

Should You Use Cash to Buy Inventory or Keep It in the Business?

Capital allocationRead article →
Article 41Inventory

Is Buying Inventory in Bulk Actually Cheaper?

Total inventory costRead article →
Article 42Inventory

How Much Safety Stock Can You Afford Before It Hurts Cash Flow?

Safety stock economicsRead article →
Article 43Pricing

Should You Raise Prices or Sell More Units to Reach Your Profit Target?

Profit target strategyRead article →
Article 44Pricing & Discounts

How Much Margin Can You Give Away Before a Promotion Stops Making Sense?

Promotion economicsRead article →
Article 45Marketing

Your CAC Is Rising but Revenue Is Growing. Is the Campaign Still Healthy?

Acquisition economicsRead article →
Article 46Marketing

More Traffic or Better Conversion Rate: Which Creates More Profit?

Growth efficiencyRead article →
Article 47Returns

When Should You Offer Free Returns — and When Are They Too Expensive?

Returns economicsRead article →
Article 48Customer Economics

Is Your Most Valuable Customer Also Your Most Profitable Customer?

Customer profitabilityRead article →
Article 49Forecasting

How Accurate Does an Ecommerce Profit Forecast Need to Be?

Decision accuracyRead article →
Article 50Forecasting

What Happens to Profit if Sales Grow but Costs Grow Faster?

Profit compressionRead article →
From analysis to store-level intelligence

The articles explain the decisions. MarginLab helps you investigate them in your own data.

Product economics, contribution, margin deterioration, profit leaks and recovery opportunities become more useful when they are connected to the commercial reality of your own store.

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